Page 73 - TSMC 2019 Annual Report

Operational Highlights 5
1 Business Activities
5
1 1 1 1 Business Scope
As the the founder and leader of of the the dedicated semiconductor semiconductor foundry segment TSMC provides a a a a a a full range of of integrated semiconductor semiconductor foundry services including the the most most advanced process technologies technologies leading specialty technologies technologies the the most most comprehensive design ecosystem support excellent manufacturing productivity and and and quality advanced mask and and and packaging services and and and so on to meet a a a a a a a a a a a a growing variety of customer customer customer needs The Company strives to to to to to provide the best overall value to to to to to its customers and views customer customer customer success as as as TSMC TSMC success success As a a a a a a a a result TSMC TSMC has has gained customer trust from around the world and and has has experienced strong growth and and success success of its own 5
1 2 Customer Applications
TSMC manufactured 10 761 different products for 499 customers in 2019 These chips were used across a a a a a broad spectrum of electronic applications including computers and and and peripherals information appliances wired and and and wireless communication systems servers and and and data centers automotive and and industrial equipment consumer electronics such as as digital digital TVs game consoles digital digital cameras IoT and and wearables and and many other devices and and applications The rapid ongoing evolution of end products prompts customers to to pursue differentiation using TSMC’s innovative technologies and services and at at the the same time spurs TSMC’s own development of technology As always success depends on leading rather than following industry trends 5
1 1 1 3 Consolidated Shipments and and Net Revenue in 2019 and and 2018
Unit: Shipments (thousand 12-inch equivalent wafers) / Net Revenue (NT$ thousands)
2019 2018
Shipments Net Revenue (Note 3)
Shipments Net Revenue (Note 3)
Wafer
Others (Note 2)
Total
Domestic (Note 1) 1 1 678
Export 8
390
Domestic (Note 1) N/A
Export N/A
Domestic (Note 1) 1 1 678
Export 8
390
91 259 259 259 259 836 058 092
8
8
8
835 783
133 832 314
100 095 042
969 890 406
1 575
9 177
N/A
N/A
1 575
9 177
81 718 513
829 577 851
8
8
398 094
111 779 099
90
116 607
941 356 950
Note 1: Domestic means sales to Taiwan Note 2: Others mainly include revenue associated with packaging and and testing services services mask making design services services and and royalties Note 3: Commencing in in in 2018
the the Company began to break down the the net revenue by product based on a a a a a a a a a a a a a a new method which associates most estimated sales sales returns and allowances with individual sales sales transactions as as opposed to the the the previous method method which allocated sales returns and allowances based on on on the the the aforementioned gross revenue The Company believes the the the new method method provides a a a a a a a a a a a a a more relevant breakdown than the previous one 5
1 1 1 4 Production in 2019 and 2018
Unit: Capacity / / Output (million 12-inch equivalent wafers) / / Amount (NT$ millions)
2019 12 - 13 2018
12 - 13 9 - 10 10 - 11 448 292
478 269
Wafers
Year
Capacity Output Amount 71